All Forum Posts by: Nathan Waters

@Doug Bryant

I have used a HELOC to get cash for a deal. It does impact your debt to income ratio so make sure your mortgage lender will still be able to lend on a new investment with both loans taken into consideration. Another method I have used is a 401K loan. Both of these options have allowed me to avoid hard money loans. I am currently working on my first private money deal but this was not something I wanted to do until I had a few cash flowing properties to prove to my investors that I wasn't going to lose their money. Good luck.

@Account Closed

Thanks. This is my 4th house in 18 months. It feels like I am moving at a snails pace, but all of the other ones were funded in more traditional ways. Either taking out a loan on my 401k or getting a traditional mortgage and using my own money for money down and repairs. This is the first stab at truly creative financing and I am crazy excited to get it done and roll into the next one. 

I tried to sell my own house in 2009. I was upside down and trying to save the 15k I was going to have to spend on realtor fees. I still listed it on the MLS and got just as much traffic as I did with a realtor. But I didn't have a flimsy FSBO sign in my front yard. I spent about $350 to put it on the MLS and with that got a professional looking sign in the front yard. As far as most buyers were concerned, it was just like any other listing.

On the flip side, I was talking to my next door neighbor who recently decided to sell his house. It has a generic for sale sign with his phone number hand written on it. Only listed on Zillow. I hope for his sake he sells it, but its such a half *** effort. For the amount of resources and energy he put into fixing up what was an abandoned short sale, its surprising that he's getting stingy on the marketing.

@David Faulkner

Something to keep in mind about quality properties. They may be harder to rent in a recession. I had a friend lose 8 houses during the housing crash because he couldn't find tenants willing to pay in rent, what he was paying for a mortgage. 

That being said, buying smart, having reserves, and not over leveraging can definitely mitigate this. I am more attracted to the C and D neighborhoods that have no shortage of renters. When recessions hit, people in section 8 houses don't all of a sudden get good jobs and move up. Thats my strategy and so far its working for me. But I do get it that some people don't want to deal with the headaches of managing homes in these areas.

I had some luck with angies list. The best contractors I got though were from the landlord that owns the apartment next door to one of my houses. He gave me advice here and there while I was rehabbing the house between tenants and gave me a drywall contractor. That led to a general contractor and handyman recommended by the drywall guy. They have been, by far, the best guys to work for me. Build relationships with local investors and you should be able to get help with leads.

If anyone is following this thread, I have an update. My attorney took a while to get it for me but I got a promissory note from him. He is recording a mortgage for me as well against the property for my lenders protection. I don't know why it was so complicated for him. I am considering using a different attorney in the future because anything beyond a simple closing seems to get him wrapped around the axle. He's been great for me so far, but for some reason he seemed a bit put off by what I am trying to do. I basically got a house with seller financing so we're doing a contract for deed. The down payment is covered by my private lender and secured by one of my other properties. Seems straight forward to me but its taking quite a while to put together. 

Wholesalers provide a completely different service than realtors. Often finding homes that realtors would not have their sites on. Jay Walking is illegal too, but I'm not going to go onto a forum for pedestrians and complain about what an abomination these criminals are. 

I second that. Talk to your neighbors and move on. If enough people speak up to the housing authority, the landlord will have to remedy the situation and may lose his ability to take section 8 renters. 

 What is your time worth? I did this my first house, but I ended up finding a few contractors that are reasonable and reliable. It has made my life much easier and my family much happier. If you are just starting out, make sure you are moving towards the goal of hiring out. Otherwise whats the point? Good luck.